Car Cargo Insurance Services
Marine insurance is a very commonly known term as a loss preventing the type of phenomenon. Basically this term was coined as a concept to managing coverage for cargo and ships on voyages but over a period of time it got the extended application to even the goods carrying vessels transporting goods either by land, air or sea. Now it also covers cargo itself and ground-based storages.
Ocean Cargo Insurance: General Definition
Due to expansive coverage now marine cargo insurance has termed into Ocean Cargo Insurance. The international transportation of goods over water has also been added to it. At the same time it is still specific to vessels moving through oceans. The Cargo coverage becomes effective soon after the cargo leaves the place of origin and remains effective till reaching and delivering of goods at the place of destination. In simple words it provides coverage between warehouses linked internationally over waters.
Ocean Cargo Insurance: Extent of coverage
Provisions of Ocean Cargo Insurance guards against partial or total loss that may occur to a cargo in transport. Coverage that the Insurance provide are of different types. It encompasses obligation which caters for financial loss to the carrier or person/s as well as to the corporation which is carrying the goods. Nonetheless every Insurance company does not follow same insurance policy and the same type of coverage of loss. Therefore an insurance policy must thoroughly be understood before deciding to buy to ensure maximum protection against losses or damaging eventualities. The terms and conditions section should be carefully read and understood before hiring insurance services.
Usual losses that are covered
Among different insurance companies same types of coverage for the same type of incidents/accidents is often found. Typically an insurance company would cater for loss due to cargo being stuck up, or loss due to the sinking of a ship during the journey, or loss due to collision/accident between vessels, or loss due to fire, the ship or vessel may catch accidentally etc. Some exporters when shipping very expensive goods (particularly between two nations) may also desire to ensure coverage of loss due to mismanagement of shipping company or error in its operations.
Damages due to Water/Fire/Explosions
Ocean cargo insurance have policies to provide indemnities for accidental damages pertaining to partial or total loss of cargo/goods caused by water (not necessarily ocean) either due to undesired exposure of goods elements to water (may be in case of heavy rains), or bursting of boiler, or any explosion on the ship, or technical defect in the body or machinery of the vessel.
Some other forms of losses that are covered
These are some types of occurrences that do happen to cargo during transportation very frequently. However, cargos are prone to some other forms of damages like damage by hook, grease or mud. Similarly, cargo may sometimes be stored improperly or inappropriately, in each case probability of loss of cargo due to theft cannot be ruled out, which may be a cause of partial or total loss of cargo. The cargo could not be delivered due to one or the other reason that may bring heavy loss due to leakage/breakage or pilferage. Therefore there can be several factual causes of heavy or small losses to cargo during a journey by sea. So it is always wise to apply ocean cargo insurance to minimize such losses.
Irrespective of the total worth of your cargo, sensible and careful approach demands you to always insure the cargo. There are a large number of companies extending help in a specialized way. To find which company may provide the most suitable coverage to cargo in reasonable (not least) cost, you may have to carry out a comparative analysis of company rates/premiums available online.
Whichever cargo insurance company you choose to buy insurance, be sure to ship cargo between nations with insurance against damages. We wish to inform our esteemed customers the facts before they go for shipping that neither the loading companies nor the shipping corporations provide any insurance facility for your goods/shipment.
Some details related to Cargo Insurance:
- This is very important to know that ‘Car Export USA Insurance’ provides no coverage to your cargo during transit. So you do not get any money even if your cargo container burns to ashes or sinks down an ocean. The only payoff you will get is a maximum of $500, that too from the shipping company. So you would need your own insurance.
- It is very alarming that in the absence of any insurance you will stand liable for the total cost of shipping as well as expenses on cargo recovery, being cargo owner and consignee as per bill of lading, in the event of your cargo completely wrecked. Whilst thousands of accidental losses either due to fire or sinking deep down the ocean do take place every year.
- Although insurance cost is nominal, and that is why most of the customers always get their shipments insured but if you feel that insurance on each shipment is unaffordable, then you can purchase an insurance policy on boats costing most.
Car Export USA presents insurance policies supported by Lloyds of London which is the most trusted company in insurance business known worldwide. It is up to the customer whether to purchase policies for entire containers, or individual cars. There are two kinds of insurance offered by CEA:
- Total loss. This type of insurance covers even the catastrophic accidents wherein your shipment get destroyed beyond recovery to any level. This type of policy will make for your losses. However this policy does not cater for damages due to rough handling, scratches, and dents, to the vehicle. The ‘Total Loss’ insurance policy will cost you 1% of the total value of the shipment.
- All risk coverage: This type of policy is comparatively expensive as it caters for total loss as well as accidental damages (scratches, dents, rough handling at ports etc.). This policy will cost you 1.5% of the total value of the shipment.
Just convey us VIN and declared the value of your vehicle to buy our policy. Rest of procedure and process will be looked after by our insurance specialist.
TYPES OF INSURANCE
Total Loss Coverage: (1% value of the car + freight)
Shipping cargo/goods are insured for total damage/loss during transit, to the whole shipment due to any of following reasons:
- Overturning or other accident
to the truck, train, boat or plane.
- Sprinkler leakage
- Collapse of dock
It is to be noted that claim for insurance only covers above mentioned 14 eventualities.
All Risk Coverage: (1.5% value of the car + freight). This is basically catastrophic coverage which will cater for all kinds of damages. A bit expensive but worth buying. All kinds of damages and physical losses, total or partial to goods, due to any external cause during transit are covered in this insurance. This also includes an extended protection against damages due to loading/unloading of goods, theft, duty, civil commotions, riots, strikes, war, and non-delivery of entire shipment or a part of it. This is subject to any special commodity terms, deductibles (as per list provided below) and standard terms.
Except for a few exemptions/exclusions which are just rare (like improper packing, delay, radioactive contamination, nuclear actions, or terrorism), found in any insurance policy of cargo, this is the best policy that covers the widest range of risks, anywhere in the world.
Deductibles: (cars, vehicles, automobiles)
Every car dealer claim is subject to 5% (up to a minimum of $500.00) deductible of insured value of the entire shipment.